China Trade - Highlight
25 Oct 2016
Foreign investment has aided Chengdu and Chongqing industries, making the region an ideal base for industrial relocation. Though, companies should note the impact of higher logistics costs on their exports, and space for industrial relocation to the region could diminish over time. But the region’s rapid growth of high-tech production has spurred demand for industrial materials, and elicited ample opportunities for upstream materials suppliers.
Investments from foreign and domestic enterprises are flowing into western China to capitalise on the pool of tech talent and ample resources there. These have facilitated Chengdu in Sichuan province and its neighbouring Chongqing municipality to develop as China’s leading modern manufacturing hubs. The huge demand in the region for production inputs and supporting services has elicited vast opportunities for relevant Hong Kong companies.